Consumer Act weighs on Mini

The Consumer Protection Act (CPA) has led to an increase in product recalls, with the latest being a recall of approximately 3,350 Minis with faulty water pumps in SA by BMW.

Eric Levenstein, director at Werksmans Attorneys, says that these recalls have occurred since the Act introduced the concept of “strict liability” for suppliers.

“The knock on effect to a company's bottom line caused by significant product recalls should not be underestimated and cannot be ignored by companies in today's economic climate,” he says.

He says that due to the increased liability suppliers are being held liable in the strictest sense and exposing themselves to substantial levels of “unnecessary litigation”